PORTSMOUTH, N.H. -- The City Council voted unanimously to allow city officials to bond out as much as $3 million more to pay for cost overruns of what is now Portsmouth's $26.2 million second municipal parking garage.
Mayor Jack Blalock stressed before the vote that he believed it was "very, very important that we stay on track and fund this extra $3 million" for the Foundry Place garage.
The garage is seen as crucial to alleviating what business leaders, city officials and residents feel is a desperate need for more parking in the downtown.
Blalock applauded the design of the garage, which he described as "spectacular for a garage."
He added that he believes the garage -- which will be located on Foundry Place off of Deer Street -- will be "something we feel proud of when it's finished."
The council's vote Monday night in City Hall came after several people spoke in support of authorizing the bonding of the additional $3 million.
The city's only existing municipal garage is the High/Hanover garage.
Everett Eaton, the chairman of the city's Economic Development Commission, called the second garage project "singularly the most important project we've ever come across" during his 17 years on the commission.
"We're beyond the tipping point, we all know that," Eaton said. "We're really in a dire situation."
City Manager John Bohenko, in a memo to councilors, blamed the project's cost overruns on escalating construction costs, the expansion of the scope of the project and higher than expected soil and site remediation.
"The city has expanded the scope of utility work, most significantly water and electrical systems to provide improved water and electrical service into both the McDonough Street neighborhood and the North End," Bohenko stated in the memo. "The water system upgrades will improve fire flows as well as provide looping of the water system improving both water quality and reliability. The electrical upgrades will not only underground the electrical service in the area but also provide improved reliability of the electrical system in the area."
The city's new Parking Garage Building Committee considered possible cuts to the project, but ultimately decided not to recommend any.
The Foundry Place garage project is part of a public-private partnership with Deer Street Associates, which is planning to build four mixed-use developments around the garage in the city's North End. The city bought the land where the new garage will be built from DSA for about $5 million.
City officials and business leaders hope the new 600-space garage will lessen the demand for parking in Portsmouth's popular downtown.
Valerie Rochon, the chief collaborator of the Chamber Collaborative of Greater Portsmouth, urged the council to authorize the additional $3 million.
"The lack of parking availability in Portsmouth is hurting our downtown businesses," she said Monday night.
She called the decision to bond out the additional money a "forward thinking step" that would help both the new garage and also nearby neighborhoods, who would benefit by the improved utilities.
David Allen, the city's former deputy city manager and the parking garage's project manager, told city councilors that the city will enjoy "large job and income gains" from the building of the garage.
He added that reduced traffic and congestion that will occur once the new garage opens -- which is scheduled for the fall of 2018 -- will "benefit residents but also commercial properties."
Assistant Mayor Jim Splaine said Monday he has not heard "any opposition" to the council authoring the additional $3 million.
"Unfortunately it's taken a long time but at least we're getting it done," Splaine said.
He acknowledged he's heard "concerns about the location" of the new garage, but he believes the garage, which will be built in the city's North End, is "a brilliant location."
"As Portsmouth continues to grow, West End businesses...can be served by this parking garage," Splaine said. "The center of Portsmouth ... is not just Market Square."
City Councilor Josh Cyr said he believes the second garage will end up "relieving a lot of pressure" on the downtown parking shortage.
But he argued that it's "important not to get too ahead of ourselves" and start talking about building a third city parking garage.
He believes that changes in the auto industry over the next 10 to 15 years, including self-driving cars, could change the demand for parking in the city.
The council voted 7-0 to approve the additional authorization.
City councilors Chris Dwyer and Eric Spear were absent from Monday's meeting.
